Ford Otomotiv Sanayi AS (Ford Otosan), a Turkey-based joint venture operated by Ford Motor Co. (F) and its Turkish partner, Koç Holding, revised its sales forecast upward to 340,000 units from 320,000 units for 2011. It included domestic sales of 128,000 units, up from the previous forecast of 121,000 units, and export of 212,000 units, up from the prior guidance of 199,000 units.
Ford Otosan started production in 1965, with each company holding a 41% share in the venture. It operates four facilities in Turkey, two in Kocaeli, one in Eskisehir and one in Istanbul.
The joint venture has a share of about 15% in the domestic market. Its share in the passenger car market is roughly 10%, while in the light commercial vehicle segment is nearly 20%.
Recently, the joint venture announced to invest €205 million ($290 million) at its Kocaeli plant in northwestern Turkey. The investment will help manufacture a new van model.
Turkey is one of the most important markets for automobile in Europe. It occupies the sixth position in the continent in terms of automobile production. As a result, it attracted the attention of many global automakers, including Toyota Motor Corp. (TM), Honda Motor Co. (HMC), Opel, Hyundai, Mercedes-Benz and MAN AG. The companies mostly produce vans, buses and trucks in the country.
Ford, a Zacks #3 Rank (Hold) stock, posted a 24% fall in profit to $1.2 billion or 30 cents per share (before special items) in the fourth quarter of 2010 from $1.58 billion or 43 cents per share (before special items) in the same quarter of 2009. With this, the automaker has missed the Zacks Consensus Estimate by 19 cents per share.
The decline in profit was attributable to lower year-over-year revenues generated by the company’s automotive operations as well as the financial arm. Total revenue during the quarter ebbed 7% to $32.5 billion. However, excluding revenues from Volvo, sales improved by $1.6 billion or 5% from the fourth quarter of 2009.
For full year 2010, Ford boasted of a profit of $7.58 billion or $1.91 per share (before special items), which is a record in more than 10 years led by strong performance in North America, reflecting favorable volume, mix and pricing, as well as better performance by Ford Credit. It compared with a profit of $19 million or one cent per share in 2009. However, the company’s profit failed to meet the Zacks Consensus Estimate of $2.09 per share.
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